Figures for mortgages 'to remain unchanged in short term'

Posted: 27 May 2009 12:15:30 GMT

The next few months are unlikely to yield much change in the mortgages market, it has been suggested.

According to Ray Boulger, senior technical manager at broker John Charcoal, the market is likely to follow a similar pattern in the short term.

He also indicated that remortgaging activity will quieten over the coming months due to expensive rates, although he predicted that "a modest increase in purchase activity" could be witnessed in this time period.

Mr Boulger remarked: "Those people whose loan-to-value (LTV) is in excess of 75 per cent - which is a good proportion of people - will struggle to get a decent deal if they remortgage because most lenders are charging much higher rates once the LTV goes above 75 per cent."

Last week, the Council of Mortgage Lenders revealed that mortgage lending dropped to around £10.4 billion in April 2009 - a figure that was down nine per cent on March's level.

It was also a 60 per cent decrease on mortgage lending activity from one year before.


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